Sunday , 25 June 2017


Housing

Your House: A Home, An Investment or a Ponzi Scheme?

real-estate2

In the past few decades, the concept of home ownership has been completely turned on its head. Previously, homes were considered a very long-term consumption good...[No one] ever considered tripling the value of their homes by retirement time and selling them to move beachside yet, somehow along the way, this became a reasonable investment expectation. Even today, home buyers still make their purchases with the hopes of escalating prices. [It begs answers to these questions: Is a house just a home? Should a house be expected to behave like an investment? Is the housing game nothing more than a Ponzi scheme where the end buyer before the market corrects becomes the "greater fool"? Let's try and answer those questions.] Words: 935

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This Is Where The Uber Rich Are Buying (and Selling) Second Homes

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There are over 552,000 multi-millionaires, and 87% of them own a second home. The wealth analysts at New World Wealth (NWW) have compiled their annual report on second home buying by multi-millionaires, those with over US$10 million in assets. Old money cites (NY, Hong Kong, etc…) top the list for the most secondary homes held by this segment of buyers, but some interesting new cities are experiencing rapid growth.

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3.1 Million Homes Owe More On Their Mortgage Than Their Home Is Worth

real-estate2

The number of homes with negative equity in the U.S. is still high, but the numbers are improving. At the end of the first quarter in 2017, 3.1 million homes owed more on their mortgage than the home was worth. This number improved from the previous quarter, with 91,000 homes regaining equity. The total number of mortgages underwater in the U.S. still stands at 6.1%.

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Housing: Is It A Good Inflation Hedge?

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Over long periods the inflation-adjusted price of homes in the U.S. has tended to increase by a little more than 1% per year. That doesn't mean owning a home is a good way to make a 1% real return on your money though. This article explains why.

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Is Housing Stock Rally Building An Addition – or Another Roof?

real-estate2

The PHLX Housing Index (HGX), subject of our Chart Of The Day, closed today at a 9-year high...yet, as the chart shows, while technically a new high...it’s a bit of a reach yet to declare this a “breakout”. That said, the chart has a few things going for it, if you are a bull on housing stocks. [Let me explain.]

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